Student Loan Repayment Planning Tips
Think about your loan repayment before you take out the loan(s). Don’t wait until you are done with school and the bills start arriving. You may decide to reduce unnecessary loan amounts to cut down on the amount of debt you are accruing.
Know approximately what your monthly payments will be, so you can be prepared to handle them when the time comes. Not making federal student loan payments on time can lead to loan default and severe consequences, such as garnishing wages or your tax return. You can use a loan calculator, such as this one, to get a good estimate of future payments.
The information that you will need to enter into the loan calculator includes:
- Amount being borrowed
- Interest rate
- Minimum monthly payment (Usually $50)
Thinking realistically about your future payments will help you to make more informed decisions today.
